Ingram Micro sales helped by favourable currency rates

Favourable currency rates have helped Ingram Micro to report a 7% increase in Q3 EMEA sales, despite the adverse effect of economic conditions on consumer demand in many European countries. Softer demand in Europe contributed to a decline in EMEA operating income which fell to 0.61% of sales from 0.

Favourable currency rates have helped Ingram Micro to report a 7% increase in Q3 EMEA sales, despite the adverse effect of economic conditions on consumer demand in many European countries.

Softer demand in Europe contributed to a decline in EMEA operating income which fell to 0.61% of sales from 0.76% in 2010 as a consequence of "a more competitive selling environment, particularly in certain retail markets".

Ingram revealed the "translation effect of European currencies had a positive impact of approximately nine percentage points on year on year growth" in EMEA.

Commenting on the results, CEO Greg Spierkel said overall demand in the distributor's key customer segment serving the SMB market had "remained relatively stable in most parts of the world during the third quarter".

The distributor had exploited "strong demand for tablet and mobility products" during the quarter but they had affected its results because of the lower margins attached to them.

"While this developing product segment is strategically very important, initial gross margins are lower than company averages," Spierkel commented, "which was a factor influencing results this quarter."

Overall, Ingram Micro reported a 5% increase in sales worldwide to $8.9bn, helped by the favourable currency rates, although net income was down 64% at $23.3m.

Sales in North America increased by 3% to $3.77bn while Asia Pacific sales were up 5% to just over $2bn and Latin America contributed $420m in sales. EMEA accounted for 30% of Ingram Micro's total sales.

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